CONSOLIDATED FINANCIAL STATEMENTS FIRST QUARTER

AUDITOR'S REPORT ON REVIEW OF THE INTERIM FINANCIAL STATEMENTS To the Shareholders of Singer Thailand Public Company Limited I have performed a review of the accompanying consolidated and company balance sheets of Singer Thailand Public Company Limited as at 31 March 1999 and 1998, and the related consolidated and company statements of income, changes in shareholders' equity, retained earnings and cash flows for the three-month periods then ended. These interim financial statements are the responsibility of the Company's management. My responsibility is to issue a report on these interim financial statements based on my review. I conducted my review in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of interim financial statements consists principally of obtaining an understanding of the system for the preparation of the financial statements, making an analytical review of pertinent financial data, and making inquiries of officials of the company who have responsibility for financial and accounting matters. This review is substantially less in scope than an examination in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I express no opinion on the financial statements which I have reviewed. Based on my review, I am not aware of any material modifications that should be made to the aforementioned interim consolidated and company financial statements for them to be in conformity with generally accepted accounting principles. I draw attention to the note 1 to the interim consolidated and company financial statements regarding economic crisis and effects on the company's operations. The company's operations have been affected, and are expected to continue to be affected for the foreseeable future, by the current economic crisis. The ultimate outcome of this crisis cannot be determined at present. SUCHART LUENGSURASWAT Certified Public Accountant (Thailand) No. 2807 PricewaterhouseCoopers ABAS Limited Bangkok 30 April 1999 The accompanying financial statements are not intended to present the financial position, results of operations, and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Thailand. SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 31 MARCH (UNAUDITED) ASSETS Consolidated Company 1999 1998 1999 1998 Notes Baht Baht Baht Baht CURRENT ASSETS Cash in hand, at banks and in transit 145,751,039 17,508,537 144,121,597 16,891,841 Short-term investments 4 - 16,000,000 - 15,000,000 Trade and installment accounts receivable (net) 3 2,933,666,314 4,187,090,396 2,922,966,109 4,174,016,124 Inventories 1,001,870,217 1,317,353,260 956,058,472 1,249,343,031 Amounts due from - subsidiaries 5 - - 956,968 13,020,600 - related companies 6 1,925,541 873,678 1,925,541 873,678 Loans to subsidiaries 7 - - 106,000,000 106,392,000 Other current assets 37,456,165 61,344,623 30,849,638 53,039,583 TOTAL CURRENT ASSETS 4,120,669,276 5,600,170,494 4,162,878,325 5,628,576,857 RECEIVABLE FROM AND LOANS TO EMPLOYEES 4,066,887 6,349,612 2,829,118 5,372,133 LONG-TERM INVESTMENTS 8 1,939,914 970,000 130,574,835 148,776,315 PROPERTY, PLANT AND EQUIPMENT (net) 721,810,042 730,688,433 567,502,785 573,781,326 PREPAID RENT 87,912,113 103,609,438 87,912,113 103,609,438 TOTAL ASSETS 4,936,398,232 6,441,787,977 4,951,697,176 6,460,116,069 The notes on pages 10 to 19 form an integral part of the interim financial statements. SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 31 MARCH (UNAUDITED) LIABILITIES AND SHAREHOLDERS' EQUITY Consolidated Company 1999 1998 1999 1998 Notes Baht Baht Baht Baht CURRENT LIABILITIES Bank overdrafts and short-term loans 74,291,673 863,343,128 75,111,866 855,606,284 Current portion of long-term loans 145,971,667 40,000,000 145,971,667 40,000,000 Accounts payable - other companies 270,458,781 366,828,218 256,702,294 352,699,584 - related companies 9 5,828,807 39,986,943 5,828,807 39,986,943 - subsidiaries 10 - - 35,751,634 48,236,037 Amount due to related company 11 1,595,991 114,132,518 938,361 113,751,603 Dividends payable 13 18,164,639 35,445,645 18,164,639 35,445,645 Accrued income tax 1,391,917 1,267,131 - - Accrued liabilities 205,292,387 411,816,426 203,426,008 406,393,455 Other current liabilities 12 29,943,717 41,681,475 29,649,576 40,812,264 TOTAL CURRENT LIABILITIES 752,939,579 1,914,501,484 771,544,852 1,932,931,815 UNSECURED DEBENTURES 500,000,000 500,000,000 500,000,000 500,000,000 LONG-TERM LOANS 1,317,123,333 1,572,203,500 1,317,123,333 1,572,203,500 PROVISION FOR RETIREMENT COST 54,914,200 50,340,000 53,400,000 50,340,000 EMPLOYEES SECURITY DEPOSITS 148,716,604 185,288,219 148,220,076 185,185,980 PROVIDENT FUNDS 185,192,645 193,449,519 183,897,044 193,449,519 TOTAL LIABILITIES 2,958,886,361 4,415,782,722 2,974,185,305 4,434,110,814 The notes on pages 10 to 19 form an integral part of the interim financial statements. SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 31 MARCH (UNAUDITED) LIABILITIES AND SHAREHOLDERS' EQUITY (CONT'D) Consolidated Company 1999 1998 1999 1998 Baht Baht Baht Baht SHAREHOLDERS' EQUITY Share capital Registered, issued and fully paid 27,000,000 ordinary shares of Bht 10 each 270,000,000 270,000,000 270,000,000 270,000,000 Share premium 225,000,000 225,000,000 225,000,000 225,000,000 Surplus on revaluation of land 241,546,403 234,946,403 241,546,403 234,946,403 Retained earnings: Appropriated - Legal reserve 27,000,000 27,000,000 27,000,000 27,000,000 Unappropriated 1,213,965,468 1,269,058,852 1,213,965,468 1,269,058,852 TOTAL SHAREHOLDERS' EQUITY 1,977,511,871 2,026,005,255 1,977,511,871 2,026,005,255 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,936,398,232 6,441,787,977 4,951,697,176 6,460,116,069 The notes on pages 10 to 19 form an integral part of the interim financial statements. SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE-MONTH PERIOD ENDED 31 MARCH Consolidated Company 1999 1998 1999 1998 Notes Baht Baht Baht Baht REVENUES Sales 803,928,104 1,016,909,290 795,609,781 1,004,352,434 Interest from installment sales 142,750,771 225,674,230 142,750,771 225,674,230 Other income 13 19,044,289 8,186,051 17,150,158 7,859,360 TOTAL REVENUES 965,723,164 1,250,769,571 955,510,710 1,237,886,024 EXPENSES Cost of sales 510,842,835 615,056,167 507,692,676 610,627,973 Selling and administrative expenses 361,104,231 474,377,890 354,288,685 469,527,518 Directors' remuneration 100,000 100,000 100,000 100,000 Interest and other financial costs 71,029,759 115,550,709 67,645,922 111,521,037 TOTAL EXPENSES 943,076,825 1,205,084,766 929,727,283 1,191,776,528 Income from operations before income tax 22,646,339 45,684,805 25,783,427 46,109,496 Income tax 535,137 917,098 - - Income after income tax 22,111,202 44,767,707 25,783,427 46,109,496 Share of (loss) from subsidiaries - - (3,672,225) (1,603,419) INCOME BEFORE EXTRAORDINARY ITEM 22,111,202 44,767,707 22,111,202 44,506,077 Extraordinary item: 16 Gain from the change in exchange rate system - 53,010,920 - 53,272,550 NET INCOME FOR THE PERIOD 22,111,202 97,778,627 22,111,202 97,778,627 EARNINGS PER SHARE Income before extraordinary item 0.82 1.66 0.82 1.66 Extraordinary item - 1.96 - 1.96 Net income for the period 0.82 3.62 0.82 3.62 The notes on pages 10 to 19 form an integral part of the interim financial statements. SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) FOR THE THREE MONTH PERIOD ENDED 31 MARCH Consolidated Company 1999 1998 1999 1998 Baht Baht Baht Baht Share capital - ordinary shares Beginning balance 270,000,000 270,000,000 270,000,000 270,000,000 Addition during the period - - - - Ending balance 270,000,000 270,000,000 270,000,000 270,000,000 Additional paid-in capital Share premium Beginning balance 225,000,000 225,000,000 225,000,000 225,000,000 Addition during the period - - - - Ending balance 225,000,000 225,000,000 225,000,000 225,000,000 Surplus on revaluation of land Beginning balance 241,546,403 235,866,403 241,546,403 235,866,403 Deduction during the period - (920,000) - (920,000) Ending balance 241,546,403 234,946,403 241,546,403 234,946,403 Retained earnings Appropriated - legal reserve Beginning balance 27,000,000 27,000,000 27,000,000 27,000,000 Addition during the period - - - - Ending balance 27,000,000 27,000,000 27,000,000 27,000,000 Unappropriated retained earnings Beginning balance 1,191,854,266 1,171,280,225 1,191,854,266 1,171,280,225 Add: Net income for the period 22,111,202 97,778,627 22,111,202 97,778,627 Ending balance 1,213,965,468 1,269,058,852 1,213,965,468 1,269,058,852 TOTAL SHAREHOLDERS' EQUITY 1,977,511,871 2,026,005,255 1,977,511,871 2,026,005,255 The notes on pages 10 to 19 form an integral part of the interim financial statements. SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF RETAINED EARNINGS (UNAUDITED) FOR THE THREE MONTH PERIOD ENDED 31 MARCH Consolidated Company 1999 1998 1999 1998 Baht Baht Baht Baht Unappropriated retained earnings Beginning balance 1,191,854,266 1,171,280,225 1,191,854,266 1,171,280,225 Net income for the period 22,111,202 97,778,627 22,111,202 97,778,627 Total unappropriated retained earnings 1,213,965,468 1,269,058,852 1,213,965,468 1,269,058,852 Appropriated retained earnings Legal reserve, beginning balance 27,000,000 27,000,000 27,000,000 27,000,000 Additional reserve for the period - - - - Total appropriated retained earnings 27,000,000 27,000,000 27,000,000 27,000,000 Total retained earnings 1,240,965,468 1,296,058,852 1,240,965,468 1,296,058,852 (More)